The Narendra Modi government’s focus on economy is expanding India’s middle class and aspirations of the poor, and it is set to grow consistently for the next two decades, Finance Minister Arun Jaitley told a gathering of American business leaders and investors.
Mr. Jaitley, who addressed similar gatherings in New York and Boston before arriving in the U.S capital, concluded his one-week tour with the speech at an event organized by the U.S-India Strategic Partnership Forum (USISPF) — a recently formed body of American companies — on Friday evening. He returns to India on Saturday.
‘One of the most open economies’
“India has one of the most open economies in the world now. We are moving up in the in the ease of doing business ranking every year. Permissions that used to take years are now routine, and you don’t have to lobby for them,” the Minister said, adding that the insolvency and bankruptcy codes have also made quitting a business easier. Mr. Jaitley said new laws have also changed the equation between creditors and debtors in India, and wilful defaulters were easily taken to task now. “But we also realize that opening the door is not sufficient. We have to create a welcoming atmosphere and that is what the government is doing,” he said.
“India has a middle class that is 300-400 million people strong, and has an emerging aspirational class. The economic roadmap laid out by the government will only expand this, making India an attractive investment destination for at least two decades,” the Minister said. He said the government’s emphasis on infrastructure and financial inclusion was giving the economy a push. The positive turn in global economic conditions would also help India, he said. “..now that the growth is returning back to the world, the future holds an important direction as far as India is concerned. The sheer size of the country and economy would offer huge opportunity for investment in India in the next few years," he said, adding that the government has taken “a series of courageous steps which ultimately culminated in demonetisation of high-value currency,” to eliminate the shadowy economy in the county.
Mukesh Aghi, president of USISPF, the Minister’s visit boosted the confidence of American companies further. “US companies and investors are very much aware of the reforms the Indian government is making in order to expand the economy,” he said.
